Risk Warning: Your capital is at risk. Statistically, only 11-25% of traders gain profit when trading Forex and CFDs. The remaining 74-89% of customers lose their investment. Invest in capital that is willing to expose such risks.

Best CFD Forex Brokers

CFD Brokers Forex

Contract for Difference (CFD) is a globally renowned tool of trading derivatives, which allows international currency traders and seize opportunities in the fluctuating prices of various financial markets in the world.

The currency trading instruments that are a fundamental aspect of the CFD’s functioning include; bonds, shares, indices, commodities, currencies, and stocks treasuries. Being that CFD Forex brokers allow trade on margin as leveraged products, traders are able to sell or buy based on the prediction of the respective fall or rise of market prices depending on the information offered by their broker firms (and they do not need to purchase the underlying asset).

Traders that use CFD trading get to forgo the cost and taxes that are accompanied by owning assets, for instance, commissions on debits and credits, account management charges or even stamp duty. Traders use CFD to mitigate their portfolio’s exposure to risk; which it achieves by enabling their diversification that allows traders to conduct business across different markets. CFD forex brokers’ global popularity among traders arises from the various benefits they offer but the primary reason is that that they help save money. The article reviews a couple of Forex brokers that are available in the table below.

  • Key information
  • Trading
  • Payment systems
  • Trading platforms
  • Trading instruments
  • Support
  • Trading accounts
  • Account settings
  • Spreads
  • Promotion
Filter
Company#LogoForex brokerFoundedRegulatedReviewsPayment systemsBroker type(?)Min. DepositMax.
leverage
Live spread
Interval:
Live
spread
EUR/USD
Live spread
Interval:
Live
spread
GBP/USD
Live spread
Interval:
Live
spread
USD/CHF
Live spread
Interval:
Live
spread
USD/CAD
Live spread
Interval:
Live
spread
USD/JPY
Live spread
Interval:
Live
spread
AUD/USD
Live spread
Interval:
Live
spread
NZD/USD
Live spread
Interval:
Live
spread
EUR/AUD
Live spread
Interval:
Live
spread
EUR/CAD
Live spread
Interval:
Live
spread
EUR/CHF
Deposit bonusAccount
Forex.com1Forex.combest broker2001
FCA, CFTC

Regulated

29

Payment systems

ECN, MM
0 $1:400N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A-
eToro2eToro2007
ASIC, FCA
34

Payment systems

NDD, STP
50 $-N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A-
FxGlory3FxGlory2012-7

Payment systems

NDD, MM
1 $1:3000N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A-
LMFX4LMFX2015-23

Payment systems

NDD
50 $1:1000N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A-
IG5IG1974
ASIC, FCA
8

Payment systems

DMA, MM
0 $1:200N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A-
OANDA6OANDA1996
ASIC, FCA
26

Payment systems

-0 $1:100N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A-
Interactive Brokers7Interactive Brokers1977
FCA, CFTC

Regulated

8

Payment systems

MM
10000 $1:40N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A-
AAFX Trading8AAFX Trading2014
ASIC, FSA
94

Payment systems

NDD, ECN
100 $1:2000N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A30 %

As a warm welcome to our newest traders, we are offering a 30% bonus on top of your initial deposit into your first AAFX live account.

XM.COM9XM.COM2009
ASIC, IFSC

Regulated

51

Payment systems

MM
5 $1:888N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A-
RoboMarkets10RoboMarkets2012
CySEC
3

Payment systems

NDD, ECN

Broker type

  • NDD
  • ECN
  • STP
  • MM
100 $1:500N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A-
FXTM11FXTM2011
IFSC, CySEC
34

Payment systems

NDD, ECN
5 $1:1000N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A-
Libertex12Libertex1997
CySEC
59

Payment systems

NDD
10 $1:500N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A-
AXITrader13AXITrader2007
ASIC, FCA
15

Payment systems

NDD
0 $1:400N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A-
XTB.com14XTB.com2002
FCA, CNMV
6

Payment systems

NDD, STP
250 $1:200N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A-
RoboForex15RoboForex2009
IFSC
13

Payment systems

NDD, ECN

Broker type

  • NDD
  • ECN
  • STP
  • MM
0 $1:2000N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A50 %

Tradable Protection 50% is available no matter the first deposit. On the next deposits you can receive it from 300$. The extra funds of Tradable Protection are not written off even during “drawdown”.

Forex4you16Forex4you2007
FSC
24

Payment systems

NDD, STP
20 $1:1000N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A-
NordFX17NordFX2008
SEBI, CySEC

Regulated

87

Payment systems

NDD, ECN

Broker type

  • NDD
  • ECN
  • STP
0 $1:1000N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A100 %
Plus50018Plus5002008
ASIC, FCA
34

Payment systems

NDD
100 $1:300N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A-
HYCM19HYCM1977
FCA
21

Payment systems

MM
100 $1:400N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A25 %
FBS20FBS2009
IFSC, NAFD
12

Payment systems

ECN, STP
1 $-N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A-
FxPro21FxPro2006
FCA, CySEC

Regulated

58

Payment systems

NDD, ECN

Broker type

  • NDD
  • ECN
  • STP
100 $1:500N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A-
Swissquote22Swissquote1996
FINMA
16

Payment systems

STP
1000 $1:100N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A-
City Index23City Index2001
ASIC, FCA
4

Payment systems

NDD, ECN
250 $1:400N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A-
FXCM24FXCM1999
ASIC, FCA
18

Payment systems

NDD
0 $1:100N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A-
Admiral Markets25Admiral Markets2001
FCA, CNMV
20

Payment systems

NDD, ECN
0 $1:500N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A-
AVATrade26AVATrade2006
ASIC, CBI
52

Payment systems

NDD
100 $1:400N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A-
IQ Option27IQ Option2013
FSA
3

Payment systems

NDD
10 $1:500N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A-
FxGiants28FxGiants2015
FCA
4

Payment systems

ECN, STP

Broker type

  • ECN
  • STP
  • MM
50 $1:500N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A20 %

Increase your trading opportunities. Get up to a bonus on all deposits up to $ 2000

Vantage FX29Vantage FX2009
ASIC
4

Payment systems

ECN
200 $1:500N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A-
Instaforex30Instaforex2007
RAUFR
26

Payment systems

NDD, ECN
1 $1:1000N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A30 %
FIBO Group31FIBO Group1998
FSC, CNMV
13

Payment systems

NDD, MM
0 $1:500N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A-
Alpari32Alpari1998
IFSC, NAFD
27

Payment systems

ECN
0 $1:1000N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A100 %
Markets.com33Markets.com2006
CySEC
8

Payment systems

NDD
100 $1:300N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A-
FXOpen34FXOpen2005
ASIC, FCA
13

Payment systems

ECN, STP

Broker type

  • ECN
  • STP
  • MM
1 $1:500N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A1 %

Welcome Bonus is credited to the micro account after making the minimum deposit.

GrandCapital35GrandCapital2006
CySEC
9

Payment systems

STP
10 $1:2000N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A40 %

The bonus is charged on any account replenishment without restrictions. The promotion is valid indefinitely.

AMarkets36AMarkets2007
FSA
30

Payment systems

NDD, ECN

Broker type

  • NDD
  • ECN
  • STP
100 $1:1000N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A25 %
Dukascopy Bank SA37Dukascopy Bank SA1998
FINMA
12

Payment systems

ECN
1000 $1:200N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A100 %Get a 100% Welcome bonus to your account.
Dukascopy Europe38Dukascopy Europe2010
FCMC
4

Payment systems

ECN
100 $1:300N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A-
FP Markets39FP Markets2005
ASIC, CySEC
3

Payment systems

DMA
100 $1:500N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A-
Just2Trade40Just2Trade2006
CySEC
6

Payment systems

ECN, STP
100 $1:500N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A-
DeltaStock41DeltaStock1998
BNB
1

Payment systems

NDD, ECN

Broker type

  • NDD
  • ECN
  • STP
  • MM
100 $-N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A-
IFC Markets42IFC Markets2006
FSC, CySEC
10

Payment systems

STP
0 $1:400N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A-
Saxo Bank43Saxo Bank19929

Payment systems

ECN, STP
10000 $1:100N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A-
HotForex44HotForex2010
CySEC, FSC
40

Payment systems

NDD
5 $1:1000N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A-
IC Markets45IC Markets2007
ASIC
16

Payment systems

NDD, ECN
0 $1:500N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A-
FXDD46FXDD2002
MFSA
7

Payment systems

NDD, ECN
250 $1:50N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A-
ActivTrades47ActivTrades2001
FCA, CNMV
15

Payment systems

NDD
100 $1:400N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A-
LiteForex48LiteForex2005
CySEC
18

Payment systems

ECN
10 $1:500N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A100 %

Bonus CRYPTO 100%

BCS Forex49BCS Forex2004
FSA
2

Payment systems

NDD, ECN

Broker type

  • NDD
  • ECN
  • STP
  • MM
1 $1:200N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A50 %

Hurry up to get a bonus! Up to $ 5000 on first deposit!

ForexMart50ForexMart2015
CySEC
12

Payment systems

ECN
1 $1:5000N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A50 %50% приветственный бонус – это специальное бонусное предложение для всех клиентов компании ФорексМарт. Воспользовавшись данной акцией вы сможете удвоить ваше депозит, выполнив всего два действия. Перв
CMC Markets51CMC Markets1989
ASIC, FCA
15

Payment systems

NDD, STP
0 $1:500N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A-
Fortrade52Fortrade2013
FCA, FSCS

Regulated

4

Payment systems

-100 $1:30N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A30 %

Fortrade offers a welcome bonus, amounting to 30% of the first deposit (up to €3000). The deposit must be €100 as a minimum and the bonus expires within 90 days. Bonus monies may be used for tr

EasyMarkets53EasyMarkets2001
ASIC, CySEC
14

Payment systems

MM
100 $1:400N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A-
Orbex54Orbex2010
CySEC
8

Payment systems

ECN
500 $1:500N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A-
Hantec Markets55Hantec Markets2009
FCA
4

Payment systems

NDD
1000 $1:200N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A-
ICM Capital56ICM Capital2009
FCA
4

Payment systems

-200 $1:200N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A-
Octa FX57Octa FX2011
FCA, FSA
19

Payment systems

ECN
100 $1:500N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A50 %

Deposit bonus can only be credited to a verified account. Deposit bonuses can only be credited to any MT4 | MT5 account.

Fort Financial Service58Fort Financial Service2010
IFSC
10

Payment systems

NDD, ECN

Broker type

  • NDD
  • ECN
  • STP
5 $1:1000N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A50 %Due to our developed system you can increase the amount of every deposit up to 50%! No doubt that more funds on your account means, more profit from trading is available for you.
BMFN59BMFN1988
ASIC, FCA
7

Payment systems

NDD, DMA
0 $1:400N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A20 %New or existing accounts at BMFN who enroll in the Bonus Program and make a qualifying deposit will receive a deposit bonus up to $10,000!
Core Spreads60Core Spreads2014
FCA
9

Payment systems

NDD
1 $1:240N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A50 %Open a CoreTrader account and start trading our tight, fixed spreads. After a month claim your bonus
FreshForex61FreshForex2004
KROUFR
13

Payment systems

NDD, MM
0 $1:1000N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A5 000 %Bonus 101%
City Index Singapore62City Index Singapore2006
MAS
6
MM
100 $1:50N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A-
TD Ameritrade63TD Ameritrade1975
FINRA, SIPC
6
DMA
2000 $1:50N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A-
Degiro64Degiro2008
FCA, AFM
3
NDD
10 $-N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A-
GO Markets65GO Markets2006
ASIC
3

Payment systems

NDD
200 $1:300N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A-
Tickmill66Tickmill2014
FCA, SIBA
6

Payment systems

NDD
25 $1:500N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A-
Yadix.com67Yadix.com2010
FSC
5

Payment systems

ECN, STP
100 $1:500N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A50 %Get a 50% Cash Bonus up to $10,000 on your first deposit. Cash bonuses are credited to your balance after the requirements are met.
FXPRIMUS68FXPRIMUS2009
CySEC, VFSC
7

Payment systems

STP
100 $1:500N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A-
Swiss Markets69Swiss Markets2012
CySEC
2

Payment systems

STP
200 $1:500N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A-
FriedbergDirect70FriedbergDirect2008
IIROC
3

Payment systems

NDD, STP
0 $1:33N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A-
TrioMarkets71TrioMarkets2014
CySEC
4

Payment systems

ECN, STP
500 $1:300N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A-
iOCBCfx72iOCBCfx2004
MAS
1
NDD
1000 $1:35N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A-
UOB Kay Hian73UOB Kay Hian2000
MAS
3
NDD
0 $1:50N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A-
KE Forex74KE Forex1972
MAS
2
NDD
0 $1:50N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A-
Haitong75Haitong2010
MAS
3
NDD, ECN

Broker type

  • NDD
  • ECN
  • STP
0 $1:50N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A-
Land FX76Land FX2013
FCA, FSCS

Regulated

4

Payment systems

NDD, ECN
300 $1:500N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A10 % 10% bonus applies equivalently to First deposit amount above $300
Pepperstone77Pepperstone2010
ASIC
6

Payment systems

ECN
200 $1:400N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A-
PhillipCapital UK78PhillipCapital UK1975
ASIC, FCA
9
NDD
200 $1:400N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A-
InvestAZ79InvestAZ2010
FSP, SPK
3
ECN
100 $1:1000N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A-
Corner Trader80Corner Trader2012
FINMA
1
MM
1 $1:200N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A-
Abshire-Smith81Abshire-Smith2011
FCA, FSCS
6

Payment systems

STP, DMA
500 $1:200N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A-
ArgusFX82ArgusFX2000
CySEC
4

Payment systems

STP
0 $1:500N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A-
Ayondo83Ayondo2008
FCA, BaFin
2

Payment systems

NDD
100 $1:100N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A-
Bacera84Bacera2009
ASIC
2

Payment systems

MM
0 $1:400N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A-
BogoFinance85BogoFinance2006
CySEC
1

Payment systems

NDD
100 $1:100N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A-
Capital.com86Capital.com2017
CySEC
1

Payment systems

NDD
100 $1:50N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A-
Capital Index87Capital Index2014
FCA, CySEC

Regulated

3

Payment systems

NDD, STP
100 $1:200N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A-
Core Liquidity Markets88Core Liquidity Markets2012
ASIC, FSA
4

Payment systems

NDD
100 $1:500N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A-
CMG89CMG2015
ASIC
6

Payment systems

-250 $1:400N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A-
Colmex Pro90Colmex Pro2010
CySEC
4
NDD, ECN
2000 $1:400N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A-
Darwinex91Darwinex2012
FCA
2

Payment systems

STP, DMA
500 $1:200N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A-
eTrader92eTrader2014
CySEC
4
NDD
100 $1:200N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A-
Flatex93Flatex1999
BaFin
2
NDD, MM
0 $1:100N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A-
Fullerton Markets94Fullerton Markets2015
FSP
8

Payment systems

ECN, STP
100 $1:500N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A-
FXCC95FXCC-
FCA, CySEC
4

Payment systems

NDD, ECN

Broker type

  • NDD
  • ECN
  • STP
100 $1:300N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A-
FX Choice96FX Choice2010
IFSC
4

Payment systems

NDD
100 $1:200N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A-
FxGrow97FxGrow2008
CySEC
3

Payment systems

ECN, STP
100 $1:300N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A-
GMG Markets98GMG Markets2015
FCA
2
NDD, STP
200 $1:100N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A-
HMS Markets99HMS Markets1972-2
NDD
1000 $1:40N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A-
Infinox Capital100Infinox Capital2009
FCA
2

Payment systems

ECN, STP
100 $1:30N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A-
iTrader101iTrader2012
IFSC
5

Payment systems

NDD
250 $1:500N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A-
Mex Exchange102Mex Exchange2012
ASIC
4

Payment systems

NDD, ECN
200 $1:500N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A-
FXPCM103FXPCM2007
FSC, DFSA

Regulated

3

Payment systems

NDD, ECN
100 $1:500N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A10 %To get this bonus, you just need to open a live trading account by registering with the new cabin.
TFI Markets104TFI Markets1999
CySEC
3
NDD
50 $1:30N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A-
Tradealot105Tradealot2010
FCA
3

Payment systems

STP
2000 $1:30N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A-
FinmaxFX106FinmaxFX2017
CROFR, VFSC
1

Payment systems

MM
250 $1:300N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A100 %Follow the link, register, replenish your trading account at least $ 100.
CommSec107CommSec1998
ASIC
4
DMA, MM
10 $1:100N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A-
Finam Forex108Finam Forex1994
CBR, NAFD

Regulated

2

Payment systems

NDD, DMA
0 $1:200N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A-
AMP Global109AMP Global2018
CySEC, CFTC

Regulated

3

Payment systems

STP
100 $1:30N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A-
Ingot Brokers110Ingot Brokers2004
ASIC
3
ECN
100 $1:400N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A-
Alvexo111Alvexo2014
CySEC, SIBA
3

Payment systems

ECN
0 $1:300N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A-
AETOS112AETOS2007
ASIC
4

Payment systems

NDD
250 $1:200N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A-
Arum Capital113Arum Capital2017
CySEC
3

Payment systems

ECN, STP
0 $1:30N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A-
ATFX114ATFX2015
FCA
7

Payment systems

NDD
0 $1:400N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A-
Key to Markets115Key to Markets2010
FCA, FSP

Regulated

4

Payment systems

ECN
100 $1:500N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A-
Trading.com116Trading.com2018
FCA
3

Payment systems

ECN
5 $1:30N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A-
BDSwiss117BDSwiss2012
CySEC, FSC
4

Payment systems

ECN
0 $1:400N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A-
ATC Brokers118ATC Brokers2005-4
ECN
2000 $1:100N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A-


0.00
Was the information useful for you?
5 (2)

Brief history of CFD trading in the world

What is CFD

The first instance of CFD trading took place in London during the 1990s. At this time, they were mainly adopted by hedge funds that sought to short sell the market without purchasing the underlying commodities themselves. It was also a great was for these hedge funds to use high leverages and place large trades that they could easily execute in the underlying market. One of the primary motivations of setting up the CFD market was the need to evade the UK stamp duty. At the time, CFDs offered an excellent opportunity for traders to transact in 1000s of financial markets around the world while at the same time avoiding the stamp duty. Although individuals could trade in the CFD markets, it wasn’t until the technology boom of the 90s and early 2000s that this form of trading became widely accepted. Since there was an increase in the number of markets that people could use to trade CFDs, this form of trading spread widely to other financial centers around the world. To illustrate the size of CFD trading, about one thirds of the volume traded on the London Stock Exchange can be attributed to CFD trading.

About CFD Trading

CFD trading involves the trading of given units of particular market instruments that includes; commodities, indices, currency pairs, stocks, shares, treasuries, and bonds among others. The selling or buying of these units depends on the CFD trader’s prediction on the rise or fall of the market prices of these instruments. The trader, therefore, does not need to buy sell or even own the underlying asset which mitigates the cost and yet bares potential to earn a profit.

The profit is earned based on the difference between the buying and selling prices of the units from the CFD instruments, this difference is what forms the spread. The spread, being the basic payment for CFD trading, with its narrowness determining how close a trader’s price is likely to move in their favor. Thus a trader gains more in the value of CFD units they buy or sell if the price of the trade instrument works in their favor. However, if the trade instrument’s price goes against the trader’s unit buying and selling price then there is the incurrence of loss which stretches out to the trader’s deposits.

Most Forex broker firms provide CFDs as part of their server products, some even offer it alongside currency pairs which enable efficiency since the trader does not now need to open separate accounts for both. This article has provided a compilation of Forex broker companies that offer CFD trading.

It is imperative to note, however, that the regulatory bodies of the Forex market with jurisdiction to the United States prohibit CFD trading, according to Securities and Exchange Commission, on Over the Counter financial instruments. So, for international traders residing and operating within the US, this article is not for you.

What to consider when choosing a CFD broker

Although the trading of CFDs was initially done publicly on stock exchanges, their growth saw the CFD models change into proprietary platforms that are not easily regulated. The advent of the internet and mobile technology led to a change of the CFD business model whereby the CFD market became a closed platform that is fully owned y private entities. Although there are regional and national regulators to oversee and impose restrictions on the trade, the threshold of having a license is quite low. It thus becomes necessary to conduct your own due diligence before adopting any platform. Here are a couple of things to consider when selecting a CFD broker.

  1. Presence of a Demo account- Like forex, CFD trading can be quite a complex process which requires constant practice. Your CFD broker should give you the opportunity to try out any ideas or trading regimes that you may have but it is advisable to do this with a simulation account. It has been common knowledge that one needs to practice at least 10,000 times before they can master something. This also applies to CFD trading.

  2. Great customer support- Although this can seem like a trivial factor when choosing a CFD forex broker, it is imperative to put this consideration when vetting the best CFD brokerage company. A key point to consider is whether your trades are executed perfectly as this might predict how often you will need to call your customer representatives. Also, confirm that the customer representatives do what they promise. Do they promise to be available ‘24/5’? Ensure that this is true as you might one day need them at odd hours.

  3. Minimum and maximum leverage- Another important consideration is the multiple of your initial funds. This is especially important for experienced traders who can use leverage to their advantage. One of the primary reasons why many novice traders lose their invested funds is due to over-leveraging of capital. It is thus imperative to use this feature wisely as it may end up sinking your invested sum.

  4. The variability and size of spreads- It is crucial to understand the importance of the Bid/Ask spread as it will affect your profits especially if you have a high trading velocity.   With CFD trading unlike FX trading, this variable will always depend on your volume and broker. With regards to this, it becomes necessary to communicate with your broker on the offers available and how to get them.

Pros and Cons of CFD trading

Advantages

A higher leverage

A key benefit of trading CFDs over other assets is the ability to get a higher leverage in comparison to the other forms of trading. The average leverage in the trading of CFDs may be as low as 2% but the margin can equally rise to 20%. Such leverage may even go higher depending on the regulatory framework in your country and the broker used.

Access to major global markets

Unlike trading stocks or bonds, you will find that trading CFDs allows you to trade in virtually all markets. Most CFD forex brokers will give you the chance to trade products in all the world’s major markets.

Little restrictions

While it is easy to find a number of markets that bar traders from engaging in a number of practices, these are almost inexistent in the CFD trading market. For example, you can find that your market prohibits you from shorting the market. In the case of CFD trading, however, the instruments can be shorted whenever you desire since you do not own the underlying asset.

Few day trading requirements

It is not uncommon to find markets that require a number of requirements for trader to day trade. These markets may even set the limit on the amount that can be traded. CFD traders are not bound by these limiting requirements and traders can day trade at any time and with the amount that they wish. Most CFD trading account will allow you to day trade for as little as $1000 but the standard day trading deposit is mainly $2000 to $5000.

Variety

The ability to get a variety of assets to invest is also a critical advantage of trading CFDs. Since you will not own the underlying assets, it becomes easier to offer a wide pool of markets to invest in. What are some of these assets? You may wonder. Treasury bills, currencies, commodities, stocks and indices are some of the alternatives that you have as a CFD trader. Variety of trading options will not only give you the ability to diversify your portfolio but will also allow you to spread risk.


 

Disadvantages

High spreads

Although CFDs offer a great alternative to invest in comparison to the traditional asset classes, one potential disadvantage is the high spread that traders have to pay. As a CFD trader, you will have to pay spreads in both the entries and exit which makes it difficult to get a profit from a small move in the CFD markets. Profits in the traditional markets are normally minimized by high fees, commissions or high minimum deposit requirements. In the CFD markets, however, are trimmed by the spreads that traders have to pay.

Lack of a comprehensive industry regulation

Unlike the FX markets, CFD trading is not highly regulated. Most traders will select a broker solely based on their reputation, active years in the market and their financial strength. While there are a number of credible CFD brokers in the market, it is imperative to carry out due diligence before investing with a single FX brokerage firm.


 

Popular CFD Brokerage Firms

AVAtrade

AVAtrade is a global Forex giant, an internationally recognized and regulated Forex broker firm which also offers CFD trading. Since its establishment in 2006 AVAtrade has grown tremendously over the years and is well known mostly for its trade volumes that exceed $60 billion a month, not to mention its collection of prestigious awards in recognition of their achievements within the global market. In its vast product palette, AVAtrade Forex brokers include products such as; Forex majors, exotics, and CFDs. Within its CFD trading service, this firm offers one of the largest varieties of markets and trading instruments compared to its competitors. Variety aside, the AVAtrade broker firm offers a relatively broader range of its CFD instruments with units such as 16 commodities, 21 ETFs, 20 worldwide indices, and hundreds of individual shares from different parts of the world. Check our AvaTrade Review on our website!

eToro

The eToro Forex broker firm is well known for its world-class social trading technology, which is a service offered that makes it stand out and puts ahead of its competitors. With over 4.5 million users the eToro’s social trading technology connects traders from over 170 countries around the globe, allowing them to utilize social trading benefits. eToro offers a standard variety of CFDs more specifically on the European and US stocks and even includes in its trade instruments, cryptocurrency more specifically bitcoin. Nonetheless, eToro’s 4.5 million clientele, all connected via social technology, is what makes its CFD service ideal especially for new players in the global trade market.

ForexTime

ForexTime is a relatively new name when placed among other global giants in the Foreign exchange market yet it is in its own right a giant in the global Forex market. Known for its affordable multi-featured brokerage not to mention world-class customer service which has earned it global recognition and awards during its short period in the game. The Top Customer Provider 2016 winner boasts of a fully established trade platform equipped with numerous trading options, a variety of software and various client services as well as educational provision all meant to cater for the trading needs of their different types of clientele.

What makes the CFD service offered by this firm one of a kind is its clientele base, which includes six hundred thousand customers. That vast network of clients forms a sturdy foundation of traders for a CFD market.